For Red Transport and Logistics Group (RED), local content is right at the heart : developing employment, improving local skills and capacity, transferring know-how, working in collaboration with local suppliers and subcontractors, enhancing local entrepreneurship with its operations.
In order to contribute to the creation of socio-economic value within the host communities, maximising local content is one of the cornerstones of RED’ s business core values.
This approach aims to develop a durable and sustainable relation with all local stakeholders, helping to reduce costs and risks associated with operations, improving the perception of the Company, creating the conditions for a climate of mutual trust, and thereby guaranteeing the Company’s ‘licence to operate’.
On the other hand, RED’ s local content approach generates positive effects on local communities, contributing to the social stability and well-being of the local population.
This business model has shown strong advantages:
- development of durable and sustainable ‘win-win’ relationships with all local stakeholders;
- enhanced ‘Learning Curve’ and project risk reduction;
- improvement in the quality of local employment, with less use of expatriate workers and a consequent reduction of internal costs;
- improvement of the perception of the Company in the eyes of the local communities. A better knowledge of what the Company does and how it accounts for and contributes to the well-being of local people creates the conditions for a climate of mutual trust.
RED’s local content approach also has positive effects on local communities, including:
- creating economic value by directly employing local people;
- contributing to local economic growth by promoting the use of local suppliers and subcontractors;
- developing know-how and competences among local employees, thus increasing their value in the labour market, as well as among local manufacturers and service providers, by improving their technological and managerial expertise;
- generating positive indirect effects for the social stability and well-being of local populations, through the benefits of employment and increasing economic value (taxes and induced expenditures in the regional economic context).